Statistics Canada released the trade data on Wednesday. Canada's trade deficit narrowed to C$2.97 billion in April from a deficit of C$3.85 billion in March.
March's figure was revised down from a deficit of C$3.02 billion.
Analysts had expected a trade deficit of C$2.1 billion.
The declined in deficit was driven by lower imports. Imports fell 2.5% in April.
Imports of motor vehicles and parts climbed by 2.7%, imports of metal and non-metallic mineral products plunged 11.3%, imports of energy products increased 7.4%, while imports of consumer goods dropped 6.2%.
Exports decreased 0.7% in April. Exports of energy products climbed by 5.9%, exports of consumer goods dropped 6.0%, while exports of forestry products and building and packaging materials fell 5.0%.